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North American Edition
7th March 2025
 
THE HOT STORY
Pushback against Elon Musk’s cost-cutting project
Donald Trump has instructed his Cabinet to work with Elon Musk’s Department of Government Efficiency (DOGE) but clarified that Cabinet members should be the ones making staffing decisions.  In a meeting at the White House yesterday attended by secretaries of state and Musk, the president hinted that DOGE may have been too indiscriminate in its mass firings of federal employees. Trump posted on Truth Social soon after the meeting ended: “As the secretaries learn about, and understand, the people working for the various departments, they can be very precise as to who will remain, and who will go. We say the ‘scalpel’ rather than the ‘hatchet’ . . . It’s very important that we cut levels down to where they should be, but it’s also important to keep the best and most productive people . . . We’re going to have these meetings every two weeks until that aspect of this very necessary job is done.” At the same time, Trump also praised Musk and DOGE after the meeting. "I think they've done an amazing job," he told reporters.
DIVERSITY, EQUITY & INCLUSION
Retailers walk a tightrope on DEI
Several U.S. retailers, including Target, Amazon, and Tractor Supply, have publicly ended their diversity, equity, and inclusion (DEI) programs but continue to support certain initiatives behind the scenes. Jason C. Schwartz, an employment law partner at Gibson Dunn, noted that companies are "trying to thread the needle" between corporate values and legal risks. While some retailers have ceased specific DEI efforts, they maintain support for events and resource groups for underrepresented employees. For instance, Tractor Supply ended a DEI program aimed at increasing management diversity but assured employees that inclusivity initiatives would persist. Schwartz said that companies are "essentially picking their battles" in this evolving landscape.
WORKFORCE
Drop in jobless claims allays fears about labor market
Applications for U.S. unemployment benefits fell last week and returned to muted levels seen at the start of the year, offering some relief after other reports pointed to worsening labor market conditions. The Labor Department said Thursday that initial claims fell 21,000 to 221,000 in the seven days to March 1st, significantly below the 235,000 forecast by economists polled by Reuters. The four-week moving average was up 250 to 224,350, while the total number of people receiving benefits after an initial week of aid, reported with a one-week lag, was up 42,000 to a seasonally-adjusted 1.897m. “Initial claims from U.S. federal workers have surged, while regular state claims have abated," commented economist Eliza Winger. "Initial unemployment compensation claims for federal employees will continue to rise in coming weeks amid the Department of Government Efficiency (DOGE) cost-cutting efforts, with spillovers to claims at a national level.”
MANAGEMENT
IRS places chief human resources officer on leave
IRS chief human capital officer Traci DiMartini has been placed on administrative leave by acting IRS Commissioner Melanie Krause, amid significant disruptions within the agency, including the recent layoffs of 7,400 probationary employees. The decision follows Krause's recent appointment as interim leader after Douglas O'Donnell's retirement. DiMartini, who joined the IRS in 2023 to spearhead a major hiring initiative funded by the Inflation Reduction Act, previously held human resource roles at various federal agencies. In recent weeks, she encouraged federal employees to stay positive during these turbulent times, advising in a LinkedIn post, "find things to be grateful for." The IRS had approximately 100,000 employees at the end of fiscal 2024.
LEGAL
Trump targets Perkins Coie
U.S. President Donald Trump has signed an executive order suspending security clearances for employees of Seattle-founded law firm Perkins Coie, citing its diversity practices and political activities. The order against the firm, which undertook work for Democrats during the 2016 campaign, represents an escalation of efforts to punish groups the president sees as aiding his enemies, the New York Times reports. Perkins Coie attorneys have in recent weeks joined other lawyers who are opposing the Trump administration’s actions publicly in court. The executive order denounces what it calls “dishonest and dangerous activity” at the firm, noting its hiring of a research firm that precipitated the compilation of a dossier of unsubstantiated allegations against Mr. Trump related to possible ties between his campaign and Russia. The order accused the firm of “undermining democratic elections, the integrity of our courts and honest law enforcement.” A Perkins Coie spokesperson said in a statement to CNN: “We have reviewed the Executive Order. It is patently unlawful, and we intend to challenge it.” 
Fired federal workers respond with class action-style complaints
U.S. government employees dismissed during the Trump administration's recent purge are launching class action-style complaints, asserting that the mass firings are unlawful and demanding their reinstatement. Lawyers Christopher Bonk and Daniel Rosenthal have filed six appeals with the federal Merit Systems Protection Board and plan to submit about 15 more. Bonk observed: "There are regulations in place to make sure that layoffs . . . are done with intentionality," claiming that the administration has disregarded these laws. The appeals target various agencies, including the Department of Homeland Security and the Environmental Protection Agency.
Trump allowed to fire head of independent watchdog agency
A federal appeals court has permitted President Donald Trump to dismiss Hampton Dellinger, the head of the Office of Special Counsel, the agency which safeguards whistleblowers. The U.S. Court of Appeals for the District of Columbia Circuit's unsigned order temporarily pauses a lower court's ruling that reinstated Dellinger. Trump's administration argued that Dellinger's role was detrimental, particularly in halting the firings of six probationary workers. Dellinger, appointed by President Joe Biden, was dismissed on February 7 without explanation. The Office of Special Counsel investigates misconduct and enforces the Hatch Act, which restricts political activities of federal employees.
California's new bill aims to protect migrant workers
California lawmakers are considering Assembly Bill 1362, aimed at enhancing protections for migrant workers in various sectors, including agriculture and nursing. The bill mandates that all foreign labor recruiters register with the state and prohibits them from charging recruitment fees. Assemblymember Ash Kalra (D-San José) stated, “For too long, the vast majority of temporary foreign workers have remained unprotected.” The legislation seeks to address the exploitation of migrant workers, which has been exacerbated by insufficient federal oversight. Currently, only a small fraction of foreign labor recruiters are subject to existing protections. The bill would extend these protections to all temporary work visa programs, excluding J-1 exchange visitor visas and talent agency recruiters. Advocates stress the urgency of passing this bill, especially in light of potential immigration enforcement actions.
WORKPLACE
Workers are going public about bad bosses
Research shows a growing willingness among staff to call out what they regard as unfair treatment, with employees frustrated with complaints processes joining forces and taking grievances to social media.
HEALTH & WELLBEING
State Department halts air quality monitoring
The State Department has ceased its Air Quality Monitoring Program, which provided crucial data on global air pollution from over 80 U.S. embassies and consulates. A spokesperson said: "The current budget climate requires us to make difficult cuts." The program, initiated in 2008, significantly raised awareness of air quality issues, particularly in countries with limited monitoring. A 2022 study highlighted that areas with U.S. embassy monitors saw a "statistically significant level" of air pollution reductions. The program's end raises concerns among environmental advocates, who argue that air pollution is a critical health issue, reducing global life expectancy by over two years.
ECONOMY
Q4 U.S. labor productivity beats expectations
The Labor Department has reported a 1.5% increase in fourth-quarter U.S. labor productivity, higher than the previously-reported 1.2% rise. Output was also upwardly revised, to 2.4% from 2.3%, while the increase in hours worked was downwardly revised to 0.8% from 1%. A 3% spike in labor costs was downwardly revised to 2.2%. Hourly compensation soared by 3.8% in the fourth quarter compared to the previously reported 4.2% spike.
INTERNATIONAL
Founder of Palo Alto Networks warns of tech exodus from Israel
Nir Zuk, the founder of Palo Alto Networks, the cybersecurity giant valued at $125bn, has expressed concerns over a potential exodus of tech talent from Israel amid ongoing war and political instability.  He has observed a troubling trend of senior executives seeking opportunities abroad, which he says could threaten Israel's tech landscape. Zuk, who has expanded his ventures beyond cybersecurity, launching a digital bank named Esh and an airline called Air Haifa, believes that while AI is transforming industries, "humans are still better" in creative roles. Despite the challenges, Zuk says he remains optimistic about Israel's potential, saying: "I believe that eventually the country will come to its senses."
AI revolution leaves Australian workers anxious
Most Australians are feeling overwhelmed by the rapid changes brought about by AI in the workplace, according to LinkedIn's chief operating officer, Dan Shapero. At the Talent Connect event in Sydney, he revealed that over 80% of business leaders plan to implement AI tools this year, while 70% of professionals feel the pace of change is accelerating. Shapero noted: "What's interesting is the pace of change is being accompanied by a general feeling of overwhelm by most professionals." He highlighted that approximately 66% of skills in the Australian job market are expected to evolve by 2030, urging workers to adapt or risk losing out on emerging roles.
TikTok jobs in Ireland at risk
Hundreds of jobs at TikTok in Ireland are reportedly at risk amid a global redundancy program, with around 300 roles potentially affected. The company employs nearly 3,000 staff in Ireland, and the Irish government has been informed of the situation. The Department of Enterprise confirmed it received a collective redundancy notification from TikTok Technology Limited on 4 March 2025.
 


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